Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Nearly 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 16 2018
By: Ira Epstein

Silver Slumps, US Military Weak, and PTJ Says We Are headed For Scary Moments
By: David Morgan

Slowly We Turn... Gold vs.
By: Gary Tanashian

COT Gold, Silver and US Dollar Index Report - November 16, 2018

GE, Nvidia, Nordstrom, Bitcoin All Tank, And The Fed Notices
By: John Rubino

Years of Recklessly Low Interest Rates Causes Inflation to Soar
By: Nathan McDonald

Gold Miners’ Q3’18 Fundamentals
By: Adam Hamilton, CPA

GoldSeek Radio Nugget: Bill Murphy and Chris Waltzek

Is Gold Under or Overpriced?
By: Arkadiusz Sieron


GoldSeek Web

SWOT Analysis: Could Gold Production Peak in 2015 as Exploration Spending Drops?

 -- Published: Monday, 6 April 2015 | Print  | Disqus 

By Frank Holmes



Gold jumped the most in two months on Wednesday topping $1,200 an ounce. The move came on the back of a report showing U.S. employers added 189,000 jobs in March, disappointing expectations of 225,000. This was the smallest gain in employment since January 2014, helping gold to end a three-session slump.

Chinese gold flows, as represented by withdrawals from the Shanghai Gold Exchange, will hit record levels for the first quarter of the year. Year-to-date withdrawals stood at 561.2 tonnes as of March 20. If this is indicative of the rest of the year, gold flows could reach 2,300 tonnes or more in 2015, a new record.

India’s gold imports jumped to 70 tonnes in March as wholesalers, manufacturers and jewelers replenished stockpiles in the run up to April’s Akshaya Tritiya festival. In other news, the Perth Mint said that sale of gold coins and minted bars rose to 34,260 ounces in March, up from 31,981 ounces the previous month.


U.S. exchange-traded products backed by precious metals lost $1.5 billion in March. Janet Yellen’s signal that the Federal Reserve is in no hurry to raise U.S. interest rates failed to allure investors back to gold. Additionally, spot gold fell for a second month in March leading to a decline of slightly more than $1 for the first quarter.

Hedge funds are betting that gold’s recent rally won’t last and are holding a record short wager that prices will decline. Short holdings rose for a seventh straight week to 84,022 contracts, the highest since the data began in 2006.

Gold Fields gave its top executives a pay raise of 21 percent in 2014. The news came on the heels of what are expected to be difficult wage negotiations in April with labor unions in South Africa.



A recent forecast by Goldman Sachs shows that 2015 will be the year when gold production peaks. This coincides with a 20-year development cycle from peak discovery, implying that there are only 20 years of known mineable gold reserves. Note how exploration spending has soared in the last five years but yielded few new discoveries. With exploration spending now in freefall, this should bode very well for future acquisitions for companies that are have already made a great discovery. Such companies include Pretium Resources, Eastmain Resources, Integra Gold, Roxgold and others which we own in the World Precious Minerals Fund (UNWPX).

According to Standard Chartered and Bank of America, gold will likely advance in 2015 even as the Federal Reserve raises interest rates, snapping two straight years of declines. The two banks forecast the price of gold to average between $1,300 and $1,320 per ounce in the final quarter of the year.

Metals Focus, a precious metals consultancy, predicted that 2015 could mark the end of the bear cycle for gold as demand looks “broadly balanced.” The group said a clearer turning point is becoming visible in 2016 as gold’s supply and demand fundamentals adjust to the new price reality and provide a more stable foundation.


Metals Focus qualified its 2015 prediction on gold by stating that the outlook for higher U.S. interest rates and a stronger U.S. dollar could push bullion down to as low as $1,080 per ounce.

Deutsche Bank sees gold remaining relatively supported into the second quarter, but is looking for a new phase of weakness to emerge as soon as the Federal Reserve starts to tighten monetary policy. Countering this, UBS says there is no longer the same firepower behind a move lower for gold, adding that any downside from here could well be contained.

Goldman Sachs earned back its place as the largest bank by commodities revenue as competitors including JPMorgan Chase scaled down or abandoned the raw materials business. However, Fed Governor Daniel Tarullo questioned whether Goldman Sachs should be allowed to own physical commodities, as the practice exposes the company to risks outside of traditional banking.

| Digg This Article
 -- Published: Monday, 6 April 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2018 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.